Synchronize Your Budget Structure with Your Organization Structure

by Arun Agrawal, Technical Consultant, SAP India Pvt., Ltd.

July 19, 2013

Review the technical specifications for a custom-developed tool that caters to the requirement to synchronize the organization structure and the budget structure for organizations using SAP Enterprise Compensation Management budgeting for their compensation management. Learn:How to create the program to address the create, movement, and delimit scenariosThe high-level design as well as pseudo code of the programThe function modules, classes, tables, relationship codes, and messages to be used

Key Concept

A budget structure consists of a budget unit with a budget type, which defines a structure, such as a company or department. Employees are sometimes compensated above their normal remuneration as a reward for achievements or as motivation. This compensation is administered by defining the budget unit. Budgeting provides the control mechanism for compensation administration within SAP Enterprise Compensation Management.

An organization structure is always changing. In the SAP Enterprise Compensation Management (ECM) system, which uses the Manager Self-Service (MSS) interface and allows you to develop and monitor detailed budgets based on organizational hierarchy data, there is an organization structure as well as a budget structure. The budget structure is generated from the organizational structure for a period and carries budget information. Once the budget structure is generated, it cannot be changed. A new budget structure can be generated, but changes are not possible. The budget structure is a mirror of the organizational structure at the time of generation with different budget types and periods and consists of budget units.

There can be disruptions in the environment caused by various factors in any organization that affect the organizational structure, resulting in changes to or creation of new hierarchies: changes in the organizational structure, adding a new department, movement of an employee or manager within the organizational structure, and so on. However, the budget structure is not affected by this change.

In the standard SAP system, there is no way to synchronize the organizational structure and budget structure. Moreover, HR administrators and users have noticed that this affects reporting in areas such as compensation planning, reviews, and manager-employee interaction. I’ll show you how to create an ABAP-based tool that works only with ECM systems and is for the salary review process. It can solve situations such as the following: The salary review process is set up for a year starting from January to December. The budget structure is generated based on the organizational structure in January 2012. The budget is then allocated to each department and the managers. Sometime in 2012, the organizational structure changed – say a new department was created. The budget amount should update accordingly.

In this article, I show you the technical specifications for how to develop your own solution and sync the organizational structure and the budget structure. Developers can benefit most from this article, but functional users can also take away the knowledge and use the same pseudo code for developing the tool. As a prerequisite, SAP ECM must be implemented along with an SAP Note that I’ll explain later.

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Arun Agrawal

Arun Agrawal is an SAP-certified professional working in the SAP Global Delivery IS practice, Arun has 10 years of experience. He has worked in many modules, including SAP IS-OIL, Banking, HCM, ECM, GTS, Retail, AFS, FICO, PP, SD, QM, ESS and MSS, PM, and MM.